As companies worldwide strive to meet sustainability goals, the urgency to adapt to evolving regulatory landscapes is paramount. New environmental, social, and governance (ESG) reporting requirements, including the EU’s Corporate […]

As companies worldwide strive to meet sustainability goals, the urgency to adapt to evolving regulatory landscapes is paramount. New environmental, social, and governance (ESG) reporting requirements, including the EU’s Corporate Sustainability Reporting Directive (CSRD) and the US SEC’s Climate-Related Disclosures, are reshaping business operations. 

Accenture aided a financial services firm in meeting SEC climate risk disclosure requirements and preparing its Carbon Disclosure Project (CDP) report. This strategic integration of climate programs into company operations has enhanced their ability to manage and report climate risks effectively. The firm’s successful incorporation of climate strategy positions it to meet upcoming disclosure mandates. 

Our 2023 Reinvention research reveals that companies excelling in continuous reinvention increased revenues by an additional 15 percentage points from 2019 to 2022. Reinventors, who integrate sustainability deeply, outperform peers financially and in non-financial metrics. 

Accenture’s ESG Measurement and Management Study highlights nine essential capabilities for moving beyond compliance. Automated processes and controls ensure robust ESG data collection and quality. Non-financial KPIs linked to financial metrics enhance transparency and integration. Leveraging AI to analyze and forecast ESG data provides advanced analytics. 

Case studies illustrate the impact. Wilo Group integrated an ESG strategy supported by executive commitment, demonstrating the potential of regulatory frameworks to achieve ambitious sustainability goals. Global Grocer improved ESG data processes, reducing carbon emissions by 50% and enhancing supply chain transparency. 

Accenture’s ESG-specific large language model (LLM) enhances ESG reporting, offering substantial productivity and quality improvements. Companies using these advanced tools see a 74% increase in productivity and a 22% quality boost. Transforming ESG data into actionable insights is crucial. Accenture helps clients build robust digital cores, using cloud and AI to streamline ESG data collection and analysis, turning compliance into a growth opportunity. 

Sources: 

https://esgnews.com/85-of-companies-anticipate-increased-mandatory-esg-disclosures-in-the-next-three-years-accenture-study-finds/ 

https://www.accenture.com/us-en/insights/consulting/esg-reporting-compliance-competitive-advantage